Entertainment leviathan Disney revealed a slight drop in profits for the second financial quarter as the Japanese earthquake and poor box office returns took a toll.

In total profits fell by one per cent to £575.5 million in the three months ended April 2nd when compared to the same period last year.

Pictured: Disney Dream was launched earlier this year

Disney Parks & Resorts Division was partially responsible, with operating profits down by three per cent to $145 million based on a seven per cent increase in revenue to $2.6 billion.

The closure of Tokyo Disneyland in the aftermath of the Japanese earthquake earlier this year forced profits down, as did additional spending by Disney Cruise Line on the launch of the new Disney Dream vessel in January.

Losses in the division were partially offset by higher passenger cruise days from Disney Dream, the company said.

“Increased operating income at our American parks and resorts was driven by higher guest spending and hotel occupancy, partially offset by increased costs. 

“Higher guest spending reflected increased average ticket prices and daily hotel room rates.

“Increased costs reflected labour cost inflation, higher pension and healthcare costs and expansion costs for Disney California Adventure at Disneyland Resort,” said Disney.”

Disney has begun removing discounts on its theme parks as the economy recovers.

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Overall Disney reported revenue of $9.08 billion in the quarter.

Disney studio entertainment sales slid to $1.34 billion in the quarter, from $1.54 billion a year earlier – partially reflecting the poor performance of Mars Needs Moms.

However, Pirates of the Caribbean 4 is expected to generate strong sales in the next quarter.